The Challenges on Beneficial Ownership Disclosure in Indonesia: A Study of the Enactment of Presidential Regulation No. 13 of 2018 on the Application of Know-Your-Beneficial-Ownership Principles by Corporations for the Prevention and Eradication of Money Laundering and Terrorism Financing

Masitoh Indriani, Dian Purnama Anugerah

2018

Abstract

The Indonesia Government passed Presidential Regulation No. 13 of 2018 on the Application of Know-Your-Beneficial Ownership (BO) Principle by Corporations for the Prevention and Eradication of Money Laundering and Terrorism Financing. Under this regulation, each corporation must determine the BO information of its business entity in order to create transparency as the obligation for Indonesia as a state member of the Financial Action Task Force (FATF) in implementing global standards for anti-money laundering and combating the terrorism financing. The information to be collected and disclosed includes the BO’s full name, identity number or driver license or passport number, date of birth, nationality, address or domicile and taxation identity number. These set of information considered as personal data that protected by laws. While the registration and submission of those information filed by the company’s shareholders or its executive boards, a public notary or an authorized agency, it still remains vague since the issue on its system readiness and also lack of coordination with some government agencies. As a result, there might be delay or rejection on the new company establishment when there is suspected, withheld or concealed on BO data. This paper aims to discuss the implementation of Presidential Regulation No.13 of 2018 specifically on the incorporation of BO registering and submitting process, secondly, whether the BO disclosing process might face issues on transparency specifically in the access of BO information, the issue on database and the right to privacy.

Paper Citation

in Harvard Style

Indriani M. and Anugerah D. (2018). The Challenges on Beneficial Ownership Disclosure in Indonesia: A Study of the Enactment of Presidential Regulation No. 13 of 2018 on the Application of Know-Your-Beneficial-Ownership Principles by Corporations for the Prevention and Eradication of Money Laundering and Terrorism Financing.In Proceedings of the International Law Conference - Volume 1: i-NLAC, ISBN 978-989-758-482-4, pages 411-416. DOI: 10.5220/0010053004110416

in Bibtex Style

@conference{i-nlac18,
author={Masitoh Indriani and Dian Purnama Anugerah},
title={The Challenges on Beneficial Ownership Disclosure in Indonesia: A Study of the Enactment of Presidential Regulation No. 13 of 2018 on the Application of Know-Your-Beneficial-Ownership Principles by Corporations for the Prevention and Eradication of Money Laundering and Terrorism Financing},
booktitle={Proceedings of the International Law Conference - Volume 1: i-NLAC,},
year={2018},
pages={411-416},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010053004110416},
isbn={978-989-758-482-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Law Conference - Volume 1: i-NLAC,
TI - The Challenges on Beneficial Ownership Disclosure in Indonesia: A Study of the Enactment of Presidential Regulation No. 13 of 2018 on the Application of Know-Your-Beneficial-Ownership Principles by Corporations for the Prevention and Eradication of Money Laundering and Terrorism Financing
SN - 978-989-758-482-4
AU - Indriani M.
AU - Anugerah D.
PY - 2018
SP - 411
EP - 416
DO - 10.5220/0010053004110416